Insurance coverage is a commodity that many people purchase for peace of mind and/or because local laws require such coverage. Thus, most people might consider insurance as something that is necessary and, at times, undesirable due to high cost of insurance premiums. A person can pay an insurance premium at one instance for coverage over a block of time, such as making a payment semi-annually for six months of coverage. Once the premium is paid, the driver commonly does not think about insurance until the next payment is due or an incident occurs that brings the premium to the driver's consciousness (e.g., being in an automobile accident). With limited and infrequent thought to insurance premiums, drivers can be less likely to perform actions that are beneficial to lowering their premiums as well as their risk factor.
Insurance companies calculate premiums for coverage through complex models based upon a variety of factors. The goal of these models is to determine a risk level associated with a driver or vehicle—based upon the risk level, an amount for the premium can be ascertained. Age, driver citation history, and other factors can be used in determining the risk level and thus ascertaining the amount for a premium.